stating that the total receivables for the year 2024 is ₱36,857,652.40 for Real
Property Tax for BASIC and SEF. Further inquiry with the Municipal Treasurer
revealed that the figures in the certification came from the Municipal Assessor.
b. RPT and SET receivables are not properly maintained.
2.9 Verification of JEV Nos. 2024-12-007252 and 2024-12-000458 showed that the
same RPT and SET Receivables totalling ₱18,428,826.20 each, respectively, set
up on April 12, 2024, were simply reversed at year-end with a debit to Deferred
Real Property Tax and a credit to Real Property Tax Receivable. Hence, the
financial statements reflected zero year-end balances.
2.10 Meanwhile, the journal entries for receipt of payment and distribution of collection
did not conform to the prescribed entries in the NGAS Manual. Collections during
the year were recorded as debits to Cash Local Treasury and Discount on RPT –
Basic and credits to Due to LGUs and Real Property Tax-Basic.
2.11 Furthermore, the RPT Receivable and Deferred Real Property Tax Income
accounts were not adjusted to reflect their collection. Inquiry with the Accounting
Staff revealed that they were unaware of the prescribed journal entries for
maintaining the RPT and SET receivable accounts.
2.12 The list of Real Property Tax delinquencies as of December 31, 2024, from the
Municipal Treasurer disclosed a total collectible amount of ₱34,098,709.48. This
reflects the collectible accounts from both the current and prior years. Therefore,
the year-end balances were understated by the same amount.
2.13 It is important to note that recording RPT and SET receivables is essential because
they serve as references for decision-makers and users of financial statements in
determining the amounts still collectible and assessing the collection efficiency of
the Municipal Treasurer. This information also enables the Local Chief Executive
(LCE) to develop effective strategies to enhance RPT and collections.
Additionally, it aids in reconciling records between the Treasurer, Assessor, and
Accounting Offices.
2.14 Consequently, the financial statements did not accurately reflect the correct
balances of the RPT/SET Receivables.
2.15 We recommended and the Municipal Treasurer agreed to provide the
Municipal Accountant with a copy of the RPT records for CY 2024 and prior
years to establish the beginning balance for CY 2025. The Municipal
Treasurer also agreed to henceforth, furnish the Municipal Accountant at the
beginning of each year with a certified list of taxpayers with amounts due and
collectible for the current year as their basis for recording the RPT and SET
Receivables in compliance with Sections 19(b) and 20 of the NGAS Manual
for LGUs, Volume 1.
41
